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Exam 18: Starting Early: Retirement Planning

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Question 51

Multiple Choice

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You can get a reverse mortgage annuity if:

A) you are willing to sell your house immediately.
B) you buy a new home and pay only a minimal down payment.
C) your mortgage is largely or completely paid off.
D) you owe more in monthly mortgage interest than the annuity amount.
E) you are willing to allow your principal mortgage balance to increase monthly.

F) B) and D)
G) A) and C)

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Question 52

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Your assets include everything you own that has value.

A) True
B) False

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Question 53

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Karen Endicott is planning for her retirement. She knows that after she retires she will no longer need her own single family dwelling. She plans on buying a condominium in Chicago, close to the bus and train line and close to a grocery store. What step in the retirement planning process is Karen completing?

The straight life annuity gives more income per dollar of outlay than any other type.

The full Social Security benefit for a spouse is what percent of the retired worker's full benefit?

Because of their actuarial aspects, defined-benefit plans tend to be more-complicated and more expensive to administer than defined-contribution plans.

Which one of the following is not a typical characteristic of a defined benefit plan?

It is almost certain that your pension benefits will increase to keep pace with inflation.

As people reach retirement age, what is the most likely housing choice they would make? Assume they are moving to a new geographic area.

When settling a divorce case, the division of pension benefits generally depends on the length of the marriage.

The Social Security office will require you to provide proof of your age.

Which of the following is considered a tax-sheltered annuity plan (TSA) ?

A SEP-IRA plan is simply an individual retirement account funded by the employer.

Keogh plans can be both defined-contribution and defined-benefit plans.

If you think you want to live in another city during retirement, it's a good idea to plan vacations now in areas you might enjoy later.

ERISA established the Pension Benefit Guaranty Corporation (PBGC).

Vesting is your right to at least a portion of the benefits you have accrued under an employer pension plan.

Ben Carmichael has been making contributions into an individual retirement account for his retirement. His contributions are tax deductible as his employer does not offer a retirement plan. What type of individual retirement account does he have?

Which one of the following is probably the best suggestion for stretching your retirement income?

What are the two most popular personal retirement plans?